It is supposedly leading the entire Nasdaq higher on Thursday.
Gaming revenue is down, but Nvidia’s (NVDA) – Get a free reportshares rose Thursday morning after the chipmaker released its fourth-quarter results after the closing bell on Wednesday.
Strength in the game is what used to drive the company’s stock, but investors seem to see the company as a long-term bet. Nvidia’s gains are responsible for the rise the Nasdaq was experiencing in early market trading, according to CNBC’s Jim Cramer.
“I know this sounds crazy, but you have to understand that Nvidia is behind this morning’s rise on the Nasdaq ($NVDA) and much more to come,” Cramer said Thursday morning.
This tweet came after he urged “everyone who has ever bought a tech stock to listen to the Nvidia conference call tonight. I’ve read it twice and still can’t hear it. I’m going for a third…”.
But not everyone in Jim’s threads was as impressed as he was.
Nvidia neighborhood
At least one person seemed to have gone through the call as well, but they came away with a very different impression of the company.
“$NVDA had nothing impressive except using big words to impress analysts. Pretty anemic earnings,” one Twitter user said.
Another said he didn’t need to listen to the conference call because the earnings numbers showed a clear sell signal.
Another thought it was foolish to buy Nvidia at current levels.
Nvidia shares rose on Thursday after reporting earnings for the three months ending in January fell 33% from the same period last year to $0.88 per share, but that number beat Street’s forecast by about of $0.07. Revenue, the chipmaker said, came in at $6.05 billion, again beating analyst estimates.
Looking ahead to the current quarter, Nvidia said revenue would likely rise 7.4% sequentially to $6.5bn, with gross margins expanding 80 basis points to around 64.1%.
